Free AIC Adjuster L1 Practice Questions: Automobile

AIC means Alberta Insurance Council on this page. This route is for Alberta Adjuster Level 1 licensing practice. Use this focused AIC Adjuster Level 1 page as a short practice test for Automobile. The items are original Finance Prep sample exam questions built for scenario-based practice, not trivia, puzzle questions, official AIC questions, copied live-exam content, or exam dumps.

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Sample questions

These are original Finance Prep practice questions aligned to this topic area. They are not official AIC questions, copied live-exam content, or exam dumps. Use them to preview question style and explanation depth before continuing with topic drills, mixed sets, and timed mock exams in Finance Prep.

Question 1

Topic: Automobile

A supervised Alberta Level 1 adjuster is handling the first call on an automobile claim. The insured says she has a sore neck after a rear-end collision, is worried about medical bills, and asks, “Can you promise my treatments will be paid right away?” The adjuster has opened the claim but has not yet reviewed the policy, accident facts, or medical information. What is the best professional response?

• A. Advise her to wait until the claim is settled before seeking treatment so coverage can be confirmed first.
• B. Tell her all reasonable treatment costs will be paid because she was injured in an insured automobile accident.
• C. Acknowledge her concern, explain the next steps for reviewing accident benefits and medical information, avoid promising payment, and document the conversation for the supervising adjuster.
• D. Tell her the insurer cannot discuss injury benefits until her doctor sends a final medical report.

Best answer: C

What this tests: Automobile

Explanation: The key point is to combine empathy with accurate process information. An injured insured should be treated respectfully and given clear expectations about what happens next, such as gathering accident details, reviewing the policy, obtaining relevant medical information, and explaining accident benefits handling. A Level 1 adjuster should not guarantee payment before coverage and entitlement are reviewed. The adjuster should also document the call and involve the supervising Adjuster Level 3 as needed. Good communication does not mean making commitments before the file supports them; it means acknowledging the person’s concern and explaining the claim process honestly.

• Promising all treatment costs ignores the need for coverage review, medical support, and supervision.
• Telling the insured to delay treatment is not an appropriate claims-process response and could worsen the situation.
• Refusing to discuss injury benefits until a final medical report is received is too rigid; the adjuster can explain the process without confirming payment.

This response is empathetic, accurate, and keeps the Level 1 adjuster within process and supervision limits.

Question 2

Topic: Automobile

A supervised Adjuster Level 1 is reviewing new Alberta automobile claim notes. Which file most clearly shows an uninsured or unidentified motorist concern, rather than only missing third-party information that can be collected through routine follow-up?

• A. The insured was struck while parked, found fresh damage on return, and has no witness, note, licence plate, or driver description.
• B. The broker has not forwarded the third-party statement, but the claim notice lists the third-party insurer and claim number.
• C. The police file number is not yet available, but the insured has the other driver’s name, phone number, plate number, and vehicle description.
• D. The insured has the other driver’s name and licence plate, but the other driver’s insurer and policy number have not yet been obtained.

Best answer: A

What this tests: Automobile

Explanation: The important distinction is whether the third party is unknown or appears to lack insurance, compared with a file that simply needs more documentation. A missing insurer name, missing policy number, delayed police file number, or missing statement may require follow-up, but those facts do not by themselves show an uninsured or unidentified motorist issue. A parked vehicle damaged by an unknown person with no plate, witness, note, or driver description raises a hit-and-run or unidentified motorist concern. A Level 1 adjuster should document the facts, obtain available police and witness information, and bring the issue to the supervising Adjuster Level 3 or insurer for coverage direction.

• Having the other driver’s name and plate usually means the party is identifiable, even if insurance details still need to be collected.
• A delayed police file number is a documentation gap, not proof that the motorist is uninsured or unidentified.
• A missing third-party statement is not an unidentified motorist issue when the insurer and claim number are already known.

A hit-and-run with no identifying information is an unidentified motorist concern, not merely an incomplete third-party contact record.

Question 3

Topic: Automobile

A Level 1 adjuster is assigned an Alberta automobile physical damage claim under direct supervision. The insured reports that his parked vehicle was damaged overnight in a strip mall lot. The file has a brief first notice, one cellphone photo of the front bumper, and a repair shop’s preliminary estimate. The insurer has not yet confirmed whether the damage was caused by collision, vandalism, or another peril.

What is the best next action for the adjuster?

• A. Obtain additional loss details, scene or vehicle photos, and a repair appraisal to document cause, extent, and value before supporting a coverage or payment recommendation.
• B. Ask the broker to decide which physical damage peril applies before any further investigation is completed.
• C. Classify the claim as vandalism because the vehicle was parked and the insured was not driving at the time.
• D. Approve payment based on the repair shop’s preliminary estimate because the insured has already reported the loss.

Best answer: A

What this tests: Automobile

Explanation: The key point is that automobile physical damage handling requires evidence of the cause of loss, the extent of damage, and the value of the repair or loss. A first notice and one photo may show that damage was reported, but they do not confirm which peril caused it or whether the estimate matches all related damage. At Level 1 depth, the adjuster should gather and document facts such as the insured’s detailed statement, location and timing, additional photos, available witness or surveillance information, and a proper appraisal or repair estimate. The adjuster should then review the evidence with the supervising Adjuster Level 3 or insurer before supporting a coverage or payment position.

• Paying from a preliminary estimate skips confirmation of cause and scope.
• Treating the loss as vandalism is premature because parked damage can arise from more than one peril.
• The broker may assist with policy information, but the adjuster must investigate and document the claim facts for the insurer.

The file needs evidence that connects the reported facts, visible damage, and repair valuation before a supervised recommendation can be supported.

Question 4

Topic: Automobile

A supervised Adjuster Level 1 is handling an Alberta automobile claim. After reviewing the SPF 1, the police report, and the repair estimate, the adjuster drafts a report recommending that the insurer deny collision coverage because the listed driver was excluded by endorsement. What is the proper claim-handling implication before the report or recommendation is sent to the insurer?

• A. The report may be sent directly to the insurer because automobile coverage decisions are made by the insurer after receipt.
• B. The report may proceed without Level 3 involvement if it recommends denial rather than payment.
• C. The report may be sent if the Level 1 adjuster clearly cites the endorsement and attaches the supporting documents.
• D. The report must be reviewed and countersigned by the supervising Adjuster Level 3 before it proceeds.

Best answer: D

What this tests: Automobile

Explanation: The key point is the supervision boundary for an Adjuster Level 1. A Level 1 adjuster may gather facts, review documents, communicate under supervision, and prepare draft material, but reports relating to the adjustment of claims require approval and countersignature by an Adjuster Level 3. That requirement applies before a recommendation proceeds, especially where the report addresses coverage, denial, payment, liability, or settlement. In this automobile claim, the excluded-driver issue may be a valid coverage concern, but the Level 1 adjuster cannot send the recommendation forward as an approved claim position without the required Level 3 review.

• Attaching the SPF 1 endorsement and police report does not remove the Level 3 approval requirement.
• The insurer’s ultimate authority does not allow a Level 1 adjuster to bypass required supervision for claim reports.
• A denial recommendation is still a claim adjustment recommendation and needs Level 3 review before it proceeds.

A Level 1 adjuster’s claim-related report or recommendation requires Level 3 approval and countersignature before it is sent forward.

Question 5

Topic: Automobile

An Alberta Adjuster Level 1 is reviewing an automobile physical damage claim under supervision. The insured reports that a hailstorm dented only the hood of the vehicle. The policy has comprehensive coverage, but no collision coverage. The appraiser’s photos show a concentrated front-end impact with a bent radiator support, and the repair vendor notes the damage is more consistent with striking a fixed object than with hail. What is the best action for the Level 1 adjuster?

• A. Deny the claim immediately because the repair vendor’s comment proves the loss was a collision.
• B. Approve the claim under comprehensive coverage because the insured reported hail as the cause of loss.
• C. Document the inconsistency, obtain further facts about the cause of loss, and refer the coverage issue to the supervising Adjuster Level 3 or insurer before any coverage position is confirmed.
• D. Ask the repair vendor to revise the estimate so the damage description matches the reported hail loss.

Best answer: C

What this tests: Automobile

Explanation: The key point is that physical evidence can conflict with the reported loss description. A Level 1 adjuster should not ignore the conflict, force the facts to fit the notice of loss, or make an unsupported denial. The proper response is to document the inconsistency, gather additional information such as a detailed insured statement, appraiser notes, weather information, scene facts, and photographs, then seek direction from the supervising Adjuster Level 3 or the insurer. The coverage issue matters because comprehensive and collision respond to different types of physical damage losses. However, the Level 1 adjuster’s role is to support a fair, documented coverage review under supervision, not to independently decide a disputed coverage position on incomplete facts.

• Approving the claim based only on the insured’s description ignores conflicting damage evidence.
• Denying the claim immediately treats the vendor’s comment as conclusive proof, which is premature.
• Changing the repair description to fit the reported loss would be improper and would compromise claim file integrity.

Conflicting physical damage facts require further investigation and supervised review before confirming coverage or making a denial.

Question 6

Topic: Automobile

A supervised Alberta Adjuster Level 1 is taking an injury intake call on an automobile claim. The claimant reports neck pain after a rear-end collision, has not yet seen a doctor, and asks whether the insurer will pay for physiotherapy and whether they should hire a lawyer. What is the best professional response?

• A. Tell the claimant physiotherapy is medically necessary and should begin immediately to protect the claim.
• B. Deny discussion of accident benefits until the claimant provides a lawyer’s letter and a physician’s final diagnosis.
• C. Record the reported injury facts, explain the accident benefits claim process and required medical information, and tell the claimant to seek medical or legal advice from qualified professionals if needed.
• D. Advise the claimant not to hire a lawyer because accident benefits are handled directly with the insurer.

Best answer: C

What this tests: Automobile

Explanation: The key point is the boundary between claim process support and professional advice. During injury intake, a Level 1 adjuster can gather facts about the accident, reported symptoms, treatment status, employment impact, and contact information. The adjuster can also explain the insurer’s accident benefits process, forms, timelines requested by the insurer, and the need for medical information to support the claim. The adjuster should not diagnose an injury, recommend a treatment plan, guarantee benefit entitlement, or tell the claimant whether to retain a lawyer. Those are medical or legal matters. If the file requires a coverage position, unusual communication, or a report, the Level 1 adjuster should work under Level 3 supervision and follow insurer instructions.

• Recommending physiotherapy as medically necessary crosses into medical advice.
• Telling the claimant not to hire a lawyer crosses into legal advice and may unfairly influence the claimant.
• Refusing to discuss the benefits process until a lawyer and final diagnosis are provided does not support fair intake or basic claim handling.

A Level 1 adjuster may support intake and explain the benefits process, but must not provide medical or legal advice.

Question 7

Topic: Automobile

A supervised Adjuster Level 1 is assigned an Alberta automobile theft claim. The insured reported that the vehicle was stolen from a shopping centre parking lot. During the first contact, the insured gives inconsistent times for when the vehicle was last seen, says there is only one key available, and appears unusually eager to settle quickly. No police report, key analysis, financing information, or witness information has been reviewed yet.

What is the most appropriate claim-handling implication of these facts?

• A. They prove the insured intentionally misrepresented the theft and justify denying the claim immediately.
• B. They should be ignored unless the police first lay criminal charges against the insured.
• C. They require the adjuster to tell the insured that the insurer believes the theft was staged.
• D. They are suspicious indicators that should be documented and investigated further before any fraud or misrepresentation conclusion is made.

Best answer: D

What this tests: Automobile

Explanation: The key point is the difference between a red flag and proof. In an automobile theft claim, inconsistent times, missing keys, or pressure for fast settlement may justify closer review, careful file notes, and direction from the supervising Adjuster Level 3 or insurer. They do not, by themselves, establish fraud or misrepresentation. A Level 1 adjuster should gather and preserve relevant facts, such as the police report, key information, ownership and financing details, statements, location evidence, and any witness or surveillance information. Claim communication should remain fair, neutral, and professional until the evidence supports a coverage position.

• Immediate denial treats suspicion as proof and is not supported by the facts provided.
• Accusing the insured of staging the theft is premature and creates an unfair communication risk.
• Waiting for criminal charges is too narrow; civil claim investigation can proceed based on claim facts and insurer instructions.

Inconsistent details and unusual claim behaviour are red flags, but they are not proof of misrepresentation or fraud without supporting evidence.

Question 8

Topic: Automobile

A supervised Alberta automobile adjuster is reviewing a covered collision repair estimate before sending the file for approval. The approved repair estimate is $3,800 before tax. GST is 5% ($190), the collision deductible is $500, and the applicable policy limit for the covered damage is $5,000. What claim payment should be recommended, assuming no betterment, depreciation, or other adjustments apply?

• A. $3,300
• B. $3,990
• C. $3,490
• D. $4,500

Best answer: C

What this tests: Automobile

Explanation: The key point is to calculate the covered repair cost first, apply the policy limit if needed, and then account for the deductible. The estimate is $3,800 plus 5% GST of $190, giving a covered repair amount of $3,990. Because $3,990 is less than the $5,000 limit, the limit does not reduce the loss. The deductible is the insured’s share of the covered loss, so the recommended payment is $3,990 minus $500, or $3,490. A Level 1 adjuster may prepare the calculation and file support, but the payment recommendation remains subject to required supervision and approval.

• $3,300 subtracts the deductible from the repair estimate but leaves out the GST stated in the file.
• $3,990 includes GST but does not apply the collision deductible.
• $4,500 uses the policy limit less the deductible even though the repair amount including GST is below the limit.

The covered repair cost including GST is $3,990, which is below the $5,000 limit, and the $500 deductible is then subtracted.

Question 9

Topic: Automobile

A supervised Alberta Level 1 adjuster is reviewing an SPF 1 automobile physical damage claim. The policy declarations show comprehensive and specified perils deductibles, but no collision/upset or all perils coverage. The insured reports that the vehicle skidded on ice, struck a guardrail, and rolled onto its side. No theft, fire, hail, vandalism, falling object, or animal impact is reported.

What is the best coverage classification and next step?

• A. Treat the facts as specified perils because ice caused the vehicle to skid.
• B. Treat the facts as all perils because comprehensive and specified perils appear on the declarations.
• C. Treat the facts as comprehensive because the loss occurred during winter driving conditions.
• D. Treat the facts as collision/upset, note the coverage concern, and seek Level 3 or insurer direction before stating a coverage position.

Best answer: D

What this tests: Automobile

Explanation: The key point is to classify the direct physical damage facts, not the weather around the accident. A vehicle that strikes another object or overturns is a collision/upset loss. Comprehensive covers non-collision causes such as theft, vandalism, fire, hail, falling objects, or similar losses, depending on the wording. Specified perils is narrower and applies only to named perils. All perils is broader because it combines collision/upset and comprehensive-type protection, but it must be purchased and shown on the policy. Since the declarations do not show collision/upset or all perils coverage, the Level 1 adjuster should document the issue and get Level 3 or insurer direction before communicating a coverage position.

• Winter conditions do not make the claim comprehensive when the direct damage comes from striking a guardrail and rolling over.
• Specified perils coverage does not apply just because ice was involved; the loss must fit a named peril.
• All perils coverage is not created by having comprehensive and specified perils listed separately on the declarations.

Striking the guardrail and rolling over are collision/upset facts, and the declarations do not show collision/upset or all perils coverage.

Question 10

Topic: Automobile

An Alberta Level 1 adjuster is assigned an automobile claim under direct supervision. The insured reports that another vehicle struck the insured’s car in an intersection. The other driver says the insured entered on a red light, and there is a witness name in the police occurrence information. What is the best next action for the adjuster?

• A. Ask only for repair estimates because liability is determined after the amount of damage is known.
• B. Accept the insured’s version and tell the other driver that the insurer will deny liability.
• C. Gather the insured’s statement, the other driver’s allegation, witness contact information, police details, traffic-control facts, and vehicle damage information for supervised liability review.
• D. Settle the other driver’s claim quickly because the collision happened in an intersection.

Best answer: C

What this tests: Automobile

Explanation: The key point is that third-party liability after an automobile collision depends on the facts showing how the collision happened. A supervised Level 1 adjuster should not admit or deny liability based only on one driver’s version, especially where the parties disagree and a witness exists. Relevant facts include statements from involved drivers, witness information, police occurrence details, traffic signals or signs, lane positions, direction of travel, point of impact, scene evidence, and vehicle damage patterns. These facts support the insurer’s liability review and help the supervising Adjuster Level 3 assess fault and next steps.

• Accepting only the insured’s version ignores conflicting evidence and risks an unsupported denial.
• Settling because the collision occurred in an intersection assumes fault without the necessary investigation.
• Repair estimates help quantify damage, but they do not replace liability facts about how the collision occurred.

Fault cannot be assessed reliably until the adjuster gathers the key collision, witness, traffic-control, and damage facts for review.

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Related focused pages

• Free AIC Adjuster Level 1 Practice Exam
• Free AIC Adjuster L1 Practice Questions: General
• Free AIC Adjuster L1 Practice Questions: Property
• Free AIC Adjuster L1 Practice Questions: Liability

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